Hambleton leases on residential deteriorating in value. if your lease has approximately ninety years unexpired, you should start considering the need for a lease extension. If lease term falls under 80 years, you will then have to pay half of the property's 'marriage value' on top of the usual cost of the lease extension to your landlord. Marriage value is the amount of additional value that a lease extension will add to the property. Leasehold owners in Hambleton will usually qualify for a lease extension; however It would be wise to check with a conveyancer to check your eligibility. In certain circumstances you may not be entitled. There are prescribed deadlines and procedures to comply with once the process is initiated so it’s prudent to be guided by a conveyancer during the process.
It is generally accepted that a residential leasehold with in excess of 100 years unexpired lease term is worth roughly the equivalent as a freehold. Where an further ninety years added to all but the shortest lease, the residence will be worth the same as a freehold for many years ahead.
| Lender | Requirement |
|---|---|
| Bank of Scotland | Minimum 70 years from the date of the mortgage. |
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Lloyds TSB Scotland | Minimum 70 years from the date of the mortgage. |
| National Westminster Bank | Mortgage term plus 30 years. For Shared Ownership, the remaining term of the lease must be at least 75 years plus the term of the mortgage at the outset of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
Lease extensions in Hambleton can be a difficult process. We recommend you secure professional help from a conveyancer and surveyor well versed in the legislation and lease extension process.
We provide you with an expert from a selection of lease extension solicitors, which ensures a targeted and efficient service as you have a dedicated port of call with an individual lawyer. Our lease extension solicitors have in-depth market knowledge dealing with Hambleton lease extensions and further afield, as well as any potential issues which may arise as well as problems with the Leasehold Valuation Tribunal.
Luke was the the leasehold owner of a high value flat in Hambleton on the market with a lease of a little over 72 years unexpired. Luke on an informal basis approached his freeholder a well known Bristol-based freehold company and enquired on a premium to extend the lease. The freeholder was prepared to grant an extension on non-statutory terms taking the lease to 125 years on the basis of a rise in the rent to £100 annually. Ordinarily, ground rent would not be payable on a lease extension were Luke to exercise his statutory right. Luke procured expert advice and secured an acceptable resolution without going to tribunal and readily saleable.
In 2014 we were contacted by Mr and Mrs. N Peterson who, having acquired a basement apartment in Hambleton in September 2011. We are asked if we could approximate the compensation to the landlord could be for a ninety year lease extension. Comparative homes in Hambleton with an extended lease were in the region of £280,000. The mid-range ground rent payable was £55 billed monthly. The lease ran out on 26 March 2104. Given that there were 78 years remaining we estimated the premium to the freeholder for the lease extension to be between £13,300 and £15,400 exclusive of legals.
In 2012 we were phoned by Mr E Carter who, having purchased a one bedroom flat in Hambleton in January 2002. The dilemma was if we could approximate the premium could be for a ninety year lease extension. Similar homes in Hambleton with 100 year plus lease were worth £186,000. The average amount of ground rent was £65 collected yearly. The lease came to a finish on 19 February 2084. Having 58 years unexpired we calculated the premium to the landlord for the lease extension to be within £24,700 and £28,600 exclusive of legals.